Callinex issues drilling update on Nash Creek zinc project

Callinex Mines Inc. has provided an update on its 2018 drilling campaign at the company’s 100%-owned Nash Creek zinc project located in the Bathurst Mining District of New Brunswick, Canada.

To date, nine drill holes have been completed to test targets located adjacent to the current mineral resources. It is anticipated that an additional 13 drill holes will be completed as part of the first phase of the 2018 campaign. The first batch of samples will be shipped for analytical testing within the next week.

Additionally, the company plans to commence a district-scale, 250 line km induced polarisation survey (IP survey) to identify potential for additional deposits that are located along a 20 km trend with previously identified high-grade mineral occurrences. The second phase of the 2018 drilling campaign will follow up on results from the ongoing campaign and new targets derived from the 2018 IP survey that is anticipated to commence shortly.

A 2011 IP survey completed over the Nash Creek deposit has proven to be the most effective method for targeting base metal sulfides. The IP survey was integral to Callinex’s initial 2017 exploration campaign that led to a major expansion of the Nash Creek deposit with an increase in Indicated zinc equivalent (Zn Eq.) pounds by 74% to 963 million lb and an increase in Inferred Zn Eq. pounds by 385% to 407 million lb. All of the IP targets that have been drill tested intersected either base metal mineralisation or alteration associated with the Nash Creek deposit.

The maiden 2018 PEA outlined a high margin, opencast mine plan that generates a pre-tax internal rate of return of 34.1% and net present value at an 8% discount rate of CAN$230 million. The life of mine all-in sustaining costs (AISC) were estimated at approximately US$0.28/lb of zinc produced, net of by-product credits.